Navigating Vietnam’s business landscape comes with its own complexities, especially when balancing Vietnamese Accounting Standards (VAS) and International Financial Reporting Standards (IFRS).
Vietnam is taking significant strides in adopting IFRS as part of its mission to align with global accounting practices. The Ministry of Finance (MoF) has established a phased roadmap for this transition:
- Voluntary Adoption (2022-2025): Entities with demand and sufficient resources will apply IFRS in preparation of consolidated financial statements, such as parent entities that are state-owned enterprises, listed companies, large public entities, and 100 percent foreign-invested companies that are pre-approved by the Ministry of Finance.
- Mandatory Adoption (Post-2025): After the voluntary period, enterprises are either subject to IFRS (compulsory consolidated financial statements and/or compulsory/voluntary separated financial statements) or compulsory adoption of the revamped Vietnam Financial Reporting Standards (VFRS) beginning in 2025.
The intricacies of the Vietnamese accounting system – while in transition towards IFRS – remain difficult to navigate. To ascertain compliance and smooth operations in Vietnam,
investors must pay attention to the latest developments in this domain and advise their accounting staff to stay alert.
To support this transition, Luther Vietnam is pleased to share our latest Newsflash, “VAS versus IFRS: Battle of the Forms“, providing:
- Comparison of VAS and IFRS, including key differences in principles and reporting.
- Insights into how businesses can prepare for and benefit from this shift.
- Guidance on leveraging accounting strategies for compliance and efficiency.
Please read the newsflash HERE | PDF. file HERE
We are confident that you will find valuable insights and guidance into these new and relevant accounting standard principles impacting all businesses.
At Luther Vietnam, we provide Business Processes Outsourcing (BPO) services to simplify your journey through Vietnam’s evolving financial landscape. Our services span pre-investment advisory, licensing assistance, accounting, HR, payroll management, corporate governance, and compliance. By combining in-depth local expertise with global standards, we empower businesses to streamline their processes, minimise risks, and focus on strategic growth.
Whether you are adapting to new accounting standards, enhancing operational efficiency, or managing statutory obligations, we are here to support your success every step of the way. Please do not hesitate to reach out to us at vietnam@luther-lawfirm.com for any assistance and/or questions.
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